Cryptocurrency is one of the most volatile markets in the world. While this leaves the investors with the opportunity to make a profit, this also poses the risks. Crypto trading offers sharp price fluctuation, and when you trade on the margin the profit and losses, both are amplified.
Bitcoin is the world’s first cryptocurrency, and it has attracted the attention of many people worldwide in just a few years. Trading in Bitcoins can be done through two ways; you can open a virtual wallet and buy Bitcoins at present market value, or you can start trading on price movements of Bitcoins by CFD trading account. Buying a Bitcoin is very similar to like buying any physical asset which you can sell later and make a profit in case the value of asset rises.
A CFD is a contract for the difference where a seller pays in cash for any difference in the price at the time when the value of cryptocurrency falls or rises. CFD allows you to trade without even having to buy the underlying asset. There is a contract between two parties based on what price they predict for the cryptocurrency on a specific future date. If the prediction is right, the party gets paid and if not they will have to give the difference to the other party. Trading Bitcoins as a CFD needs you to speculate on the price movement of the Bitcoin in the market. The price of the Bitcoin is quoted in fiat currencies most commonly in USD.
The reason why people prefer to trade Bitcoin CFDs instead of owning the Bitcoin is that CFDs come with lower commissions and traders can even gain from the lower price movements. Another difference between buying the actual Bitcoin and Bitcoin CFDs is that you only get to buy the Bitcoin as much as your budget allows but with CFD, you can hold a larger position irrespective of how much money is at your disposal. Bitcoin CFDs has the potential for larger profits. However, the risk offered by CFD is higher in comparison to buying a Bitcoin if your predictions fail.
In addition, the trading of Bitcoin CFD executes quickly; you don’t have to wait for an order to fill out. You also get to trade the Bitcoin using fiat currency. For Bitcoin CFDs, you don’t have to own the cryptocurrency before starting trading, unlike the traditional trading method.
AAATrade, one of the most renowned investment firms, is the best place to trade in Bitcoin. The firm lets its clients invest in Bitcoin through its cryptocurrency exchange and through its CFD trading account. AAATrade is unique in the sense that it is the only investment firm offering access to more than 1,000 CFD instruments including Shares, Indices, Forex, Futures, Precious metals, ETF and cryptocurrencies. The firm is trustworthy as it is licensed and regulated by the Cyprus Securities and Exchange Commission. On top of it, the firm ensures strict compliance with all European regulations.
Apart from offering the cryptocurrency exchange and CFDs on cryptocurrencies, the firm offers its liquidity services to its clients. As a liquidity provider, the firm offers great price stability enabling the traders to buy and sell the assets with ease at different price levels. Similarly, the advisory services offered by the firm are exceptional. The advisory services are suitable for the individuals and the institutions who wish to keep the sole control on their investment and still want to get expert advice on the global market.
Considering the volatility in the Cryptomarket, a reliable investment firm likes AAATrade is the best place to trade in cryptocurrencies.